How to Buy Gold Coins

Buying gold bullion coins is an ancient and reliable decision when it comes to increasing your investment portfolio. With a history spanning thousands of years, gold bullion coins are a wise choice for asset protection due to their consistent value of worth over time.

Now is a great moment to start investing, and through this article, we will highlight the best tactics and strategies on how to buy gold coins.

Key Points

• Investment Reliability: Gold bullion coins have a long history, providing a stable value for investment portfolios.

• Simplified Purchasing: Numerous straightforward methods exist for buying gold coins, catering to different investor needs.

• Physical Asset Benefits: Gold coins offer tangible investment, ease of liquidity, and require minimal maintenance.

• Coin Types: Distinction between bullion and numismatic coins, each serving different investment purposes.

• Online Buying Advantage: Online dealers often present the best options for variety and competitive pricing.

If you have searched “where can I buy gold coins” or “how to buy gold coins” and feel overwhelmed by the sheer wealth of information, you are certainly not alone. Buying gold coins can be approached in various straightforward ways, each with its own set of pros and cons, but the actual premise is mercifully uncomplicated.

We aim to make the process as straightforward as possible and consider the advantages and disadvantages of each method. 

Before we look at the best way to buy gold coins, let’s take on board a few important factors, before moving onto practical advice on how to buy gold coins.

Why Buy Gold Coins?

You would be forgiven for thinking the only reason to buy gold coins relates to potential profits. After all, this is the prime motivating factor for most people in any investment model. However, there are further reasons that could be viewed as equally beneficial for reasons that may not be immediately obvious. 

• Gold is a physical asset. You can physically hold gold coins, which is not common in other forms of investment. Gold is almost immune to destruction – unlike many other commodities, gold coins do not require ongoing care or resources.

• No counterparty risk when buying gold coins. Gold coins don’t rely on any paper contract for their value, as they are unique financial assets and are not dependent on the responsibilities of any third party (including banks or governments).

• Gold is easily convertible to cash. Gold coins are recognized literally everywhere in the world and can be sold in almost every major city. In urgent situations, gold’s demand often rises, unlike collectibles such as artwork, which may take more time to sell, attract fewer buyers, and often come with substantial fees.

• Gold is compact in value. A staggering amount of value can be held in a small number of gold coins, allowing you to store them without hassle, even in limited spaces such as safe deposit boxes. You might be surprised at the sheer monetary equivalent that can be stored in a small area. 

• Gold is extremely private. Few assets offer such a huge level of privacy and confidentiality in today’s transparent, digital world. While paying tax on gold must be a priority for obvious reasons, purchasing gold coins is usually a very discreet investment type that does not attract too much attention, if any.

• Buying gold coins has a portable nature. Gold coins can be easily transported across borders, offering an advantage in mobility.

• Consistent store of value. While the price of gold may (and will) fluctuate, its inherent value remains largely stable and consistent over time. Since the creation of the Federal Reserve just over a century ago, the US dollar has seen a general decrease in purchasing power. Gold, on the other hand, has largely maintained its value. 

• Secure and resilient. In a digital world where cyber threats are all too common, buying gold is a far more secure alternative.

• Gold is highly accessible. Whereas specialized collectibles or investments require a certain level of knowledge (or even expert knowledge), gold bullion coins require no such thing: you simply buy and hold. 

• Low upkeep costs. When you compare buying gold coins to investing in something like real estate, gold coins are completely hassle-free and inexpensive to store. Even if you decide to use secure facilities, owing to the small storage requirements, the monthly costs are refreshingly affordable for most investors. 

What Type of Gold Coins Should You Buy?

As noted, the premise really is quite simple. The first thing you should know is that buying gold coins falls into two basic categories: bullion coins and rare coins, otherwise known as numismatic gold coins. 

Bullion Coins

Bullion coins are crafted from gold, with the main focus on the precious metal content of their value. These coins are a direct investment in gold, with some containing an alloy for increased durability. They differ from collectible coins, having more of a focus on the actual gold content rather than the rarity, aesthetic, or historical value.

You might be familiar with the term “sovereign” coins, which essentially just means that the government has minted its own bullion coins. These coins are produced each year and usually have a specific face value, which is typically less than the actual gold value. 

Governments always guarantee these coins, which provides an additional layer of security for investors. Examples of this might include the American Eagle or the Canadian Maple Leaf, for example. 

Numismatic Coins

Numismatic coins are rare, collectible items with a value that stems from rarity and condition rather than just the actual gold content. These coins often (but not always) carry premiums over bullion coins, depending on their general collectibility and rarity.

Which Is Best?

For most new investors, it is advisable to avoid numismatic gold coins due to their high markups and the highly specialized knowledge that is required. Dealers are known to push these types of gold coins for higher profit margins, but unless you’re keen on the collecting side of it, bullion coins are far less complicated and would be considered by most as the best gold to invest in. Again, generally speaking. 

Proof coins and semi-numismatics also tend to be geared toward avid collectors, with the former being high relief and visually quite striking coins and the latter being modern collectibles that have yet to gain any historical status. These categories usually come with higher costs and are more suitable for dedicated hobby collectors.

Liquidity and Recognition

When buying gold coins, two key factors worth considering are liquidity and recognition. Sovereign coins are recognized globally and offer easy liquidity due to their widespread acceptance virtually anywhere. Rare coins, on the other hand, may present various challenges during the resale process, such as verification of authenticity or even just finding a willing buyer, both of which can potentially lead to a lower return on investment.

In essence, the guiding principle for investors should be to choose the most common and popular gold coins. This ensures ease of sale when the time comes. This is a rule that holds true whether planning to sell in the future or pass the assets to living heirs, further down the line. 

Either way, sovereign coins – being so well-known and trusted – are generally preferable for those looking to invest in gold. The best approach when considering how to buy gold coins for investment is to focus on bullion sovereign coins for their stability and ease of liquidity – not to mention the safety that comes with government backing. 

Best Place to Buy Gold Coins

The vast majority of people who buy gold coins either for investment, collectible, or sentimental reasons do so at a local coin dealer or online. However, you do have other options. We have covered them all below.

Buying Gold From Local Coin Dealers

Many investors would argue the best place to buy gold coins would be through a local coin dealer. Most major towns have one or two, and all cities have several, so the chances are pretty good that there will be a gold coin dealer close to you.

The main benefit of buying gold through a coin dealer relates to the tangible nature of the interaction: you can actually inspect the gold coins physically before committing to purchase. Some might argue this also provides an element of gratification and even possession, but more importantly, it eliminates the need for shipping costs and insurance fees associated with online purchases.

However, there are caveats and limitations to buying gold coins locally. Many local coin dealers tend to focus more on numismatic or collectible coins rather than investment-grade bullion coins and if they do offer bullion coins, the variety might be quite limited. Prices at local dealers can also be higher – not always, but often – potentially increasing your investment cost.

Buying From Television Dealers

You might be surprised to know this is still a common practice, but it is. TV coin dealers are slightly less prevalent than in their heyday of the nineties, but they do continue to operate in large numbers. But why would you buy gold from a TV-based vendor? In all honesty, we struggle to think of any positives here and would suggest you don’t.

Television advertising is obviously incredibly expensive, and those costs have to be paid for by someone. That ‘someone’ is you. Factor in the cost of celebrity endorsements with high interest rates on monthly payments, and the actual coin prices will be way over market value. To be candid, there really are no logical reasons why buying gold from a TV dealer would be a bright idea.

Coin Shows

Coin shows are a great opportunity to acquire gold coins, medals, and historical currencies, and if you are flirting with the numismatic community, they are also a good opportunity to connect with other people.

For gold investment buyers, though, coin shows might not be the most wise course of action. Although some larger shows regularly feature various gold bullion coin dealers, the variety and availability do not match those of online dealers, which generally offer a wider selection.

Buying Gold Coins From Banks

While many major banks provided bullion trading and storage services in years gone by, fewer banks engage in trading today -although many still offer secure storage solutions for bullion. Buying gold coins from banks locally might be a struggle, but many international banks (like those in Switzerland, for example) continue to offer gold trading services to their clients.

Buy Gold Coins Online

Buying gold online requires a certain level of trust, as payment is made before receiving the gold coins. However, this is never a concern with established online gold coin dealers, who treat their reputation and customer service as a priority.

The main benefit of online dealers is that they often offer far more competitive pricing compared to local stores, even when factoring in shipping and insurance costs. They almost always have a far greater range of coins available in comparison to the aforementioned sources.

Of all the methods mentioned in this guide, buying gold coins online would be considered the best method by the majority of people – especially those with experience in this area. But how to buy gold coins online safely? Thankfully, the process is quite simple. 

How to Buy Gold Coins Online

When selecting an online dealer, your first consideration should be the pricing of products as advertised on their website, including any shipping and insurance fees. 

While these costs might not always be immediately obvious and clearly stated, a good online gold dealer will provide full transparency in their pricing. Dealers who fail to display prices may be attempting to engage customers directly for sales purposes, so it is prudent to favor online gold dealers who are upfront and clear about their costs.

Before finalizing a purchase, always confirm the expected delivery timeframe, as this ensures you have a clear understanding of when to expect your gold coins.

Diligence Is Key

When considering how to buy gold coins, you should first explore the different options available to you – although the decision usually comes down to personal preferences, location, and wider investment strategy. 

Either way, be prudent and diligent, as always. Whether you are buying gold coins online or through more traditional channels, careful consideration should result in a sound investment. It is difficult to go wrong with gold, after all, provided you are careful.

Retirement Piece of Mind with Gold IRA Blueprint

Remember that diversifying your investment strategy can offer even greater security and potential gains. Our gold IRA investments, for example, provide a wider and more comprehensive approach to investing in precious metals. 

Interested in learning more? With over 20 years of expertise and commitment to personalized, professional guidance, Gold IRA Blueprint can ensure that your investments are not only secure but also lucrative. 

Sources

https://www.gold.org

https://www.royalmint.com/sovereign/bullion

https://en.wikipedia.org/wiki/American_Gold_Eagle